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Keurig Green Mountain, the capsule coffee maker, will work with Kraft, and its share price has soared.

According to the cooperation agreement, which did not disclose details, Green Mountain Coffee will start filling capsule coffee with coffee ingredients provided by Kraft, MarketWatch reported.

The addition of Kraft's well-known brands such as Maxwell House, Yuban and Gevalia will greatly expand Keurig's capsule coffee range.

More significantly, the deal also comes with McDonald's McCafe-branded coffee, which may also help boost sales of the world's largest fast-food company.

Earlier this week, Kraft announced that it would start using its distribution channels across the United States to supply McDonald's McCafe-branded coffee powder and raw beans to supermarkets and various food retailers. It is planned to start shipping early next year.

According to the sales agreement between Kraft and McDonald's, when Kraft and Green Mountain Coffee signed a supply agreement, they also brought McCafe into the capsule coffee market.

At present, in addition to Green Mountain Coffee's own brand coffee, well-known brands such as Starbucks and Folger have also joined the capsule coffee market.

McCafe, which went public in 2009, has become a key winning weapon for McDonald's to rush into the breakfast market, providing consumers with cheap and high-quality Indonesian Java coffee. McDonald's said McCafe led to a 70 per cent increase in overall coffee sales.

Kraft and McDonald's Coffee, with high brand awareness, introduced Green Mountain's rapidly expanding sales network to boost Green Mountain's share price.

After the news was announced, Green Mountain Coffee shares rose 15.61 yuan, or 13.26 percent, to close at $133.36.

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FrontStreet Coffee Address: 315,Donghua East Road,GuangZhou

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